The quarterly newsletter from PSG Asset Management.
In this edition, we consider the value a different investment approach can bring as a part of a balanced portfolio. While prolonged market cycles are testing the resolve of investors, giving up at this time holds two distinct dangers for investors: the first is over-paying for expensive but popular assets simply because investors are willing to pay more to hold them; the second is not investing in quality companies that are on offer in unloved sectors of the market simply because investors are too fearful to commit capital. By focusing on our trusted 3M investment philosophy, we are able to look beyond the noise and focus on applying capital judiciously for our clients.
A distinctive approach brings its own value to the portfolios we manage
The longer current market trends persist, the more investors expect patterns of past performance to be repeated. The current market cycle is, however, exceptional by historical standards. When the ability to repeat past performance rests on an ever more demanding set of preconditions for success, simply extrapolating past performance into the future is fraught with peril. Yet many investors continue to pile into crowded areas of the market, oblivious to the mounting dangers.. ... Read more
Polarisation and conviction are amplified – the impact on investment
outcomes will be significant
The world has become visibly polarised, and market participants have responded by becoming even more committed to their opinions. This has given rise to highly concentrated positioning in consensus views in financial markets, and it implies that participants expect extreme conditions to persist. ... Read more
Opportunity in the time of Covid-19
2020 will go down in history as a year of extremes. The disparities we confront today are not necessarily new: many have been slowly building and had already reached high levels before the Covid-19 pandemic hit and pushed the elastic band further. ... Read more
Signs of life for SA’s currently least loved asset class?
The South African listed property sector has had a torrid few years. After being a darling of local investors for several years, the local listed property sector has more recently suffered the ignominy of being the worst performing asset class since 2018. ...
Portfolio Holdings as at 30 September 2020
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Performance to 30 September 2020
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Unit trust summary
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PSG Angles and Perspectives: Q3 2020 (pdf)
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Archive of previous editions
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